3 Ways Hoteliers Can Prepare for the Biggest Trends of 2024 and Beyond

In 2024, chasing demand will be a top priority for the travel industry as we head in for a year of moderate growth. While the outlook is promising, lodging businesses are now challenged to increase their RevPAR without alienating price-sensitive guests, as demand is expected to remain relatively flat and inflation rates are high globally.

3 Ways Hoteliers Can Prepare for the Biggest Trends

As a hotelier, you must stay informed of market changes, act quickly to seize opportunities, and provide your guests with unique experiences to outperform competitors. In this article, you will find three ways to prepare for some of the biggest trends in hospitality this year.

1. Make Experiential Travel Work for You

Travelers are not swayed by just the destinations anymore: in recent years, there has been a shift towards experiences. From adventure trips and gourmet meals to concerts and music festivals, travelers are now looking for unique experiences that let them truly immerse themselves in the destination.

As a hotelier, you can leverage your property’s strengths to deliver unforgettable experiential trips. Let potential guests know about your proximity to any events happening in the area and take advantage of its offerings. For example, if your property is close to a concert venue, consider offering packages of overnight stays with transportation or tickets to a show. You could also partner with local vendors to provide activities and excursions like market tours or visits to farms and vineyards.

To capitalize on the experiential hospitality trend, watching for upcoming concerts, sports events, and festivals is a good idea. That way, you can adjust your rates and implement stay restrictions when demand is expected to spike. Relying on a revenue management system can help you manage rates across multiple distribution channels to maximize profits.

Of course, you cannot forget about the fundamentals of the modern guest experience. You should consistently maintain great service throughout the guest journey, from a frictionless check-in experience to sending post-stay messages and offering special rewards to repeat guests. Even the smallest details can add value and show that you and your staff care.

2. Expand Beyond Leisure Travel

After a couple of years of exponential growth following the pandemic, leisure travel is reaching a standstill. While this might challenge hotels, three other segments that have been slower to rebound are set to grow this year: international, corporate, and group travel. Both international and business travel are expected to fully return to and even surpass pre-pandemic levels, while the momentum of group travel will continue through 2024.

Properties catering to various market segments have a better chance of maintaining high occupancy and room rates throughout the year. Corporate travelers are generally willing to pay premium rates, while groups tend to book their stays well in advance. Therefore, the ability to identify and target different segments is crucial. Using various tools, such as your property management system (PMS), to analyze your booking data and create a detailed segmentation plan will help you build an ideal business mix and optimize your revenue.

Suppose you aim to attract business travelers. In that case, you should also consider connecting to a global distribution system (GDS) to showcase your property’s available inventory and rates to travel agents and corporate bookers. With a GDS booking system, your hotel can gain exposure to a specific and professional travel community that may not be easy to reach through your hotel’s website or online travel agencies (OTAs). Ultimately, this system can lead to new revenue opportunities, including increased return business, longer stays, and attractive package deals with airlines and rental companies.

Properties that don’t usually host group or business travelers can still benefit from increased demand in the area. Staying up to date with upcoming conferences and events through your local convention and visitors bureau (CVB) should provide you with enough notice of opportunities to increase your rates.

3. Offer More for Less

Despite the high inflation, travelers are unwilling to relinquish their desire to explore new places. According to Forbes, 64% of travelers plan on cutting other personal expenses to prioritize leisure travel in 2024. Many guests are now finding creative ways to combat rising costs and get more value for their money, such as choosing less popular destinations and using money-saving hacks like traveling off-peak during weekdays and staying closer to home.

Hotels, on the other hand, have operational costs that they need to cover. Even if travelers are reluctant to spend more money, this doesn’t mean that hotels should just slash their room rates or offer perpetual discounts. Properties can increase revenue by offering discounts during low-demand periods, encouraging aspirational travelers to trade up by promoting premium rooms at reduced rates, and charging premiums for additional conveniences like flexible cancellation and late check-out.

You can also provide a great experience to your guests through small gestures that do not cost much money. For instance, value-adds such as an upgrade, a welcome cocktail, or special room amenities can make a big impact on the guest’s experience.

Additionally, you could consider offering your guests “buy now, pay later” (BNPL) options. This fast-growing form of payment allows customers to book their trip without paying upfront, spreading the cost over several weeks or months. Guests may be more inclined to book additional stays, choose upgrades, and increase conversion rates through BNPL, especially if inflation rises.

In 2024, as travel patterns continue to change, hotels face challenges amidst fluctuating demand and rising inflation. However, by prioritizing unique experiences, targeting diverse markets, and offering value-added services, hotels can learn to ride the wave and thrive in this evolving landscape.

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